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Firm Management

Why Workforce Diversity Can Benefit Your Business

May 14
5:26 PM 2019

Most business owners and aspiring entrepreneurs have by now heard about the importance of workforce diversity if they want their company to endure for long. Despite the immense attention being paid to workforce diversity in this day and age, however, many managers and business owners are unfamiliar with the real benefits of a diverse workforce and remain confused about how to assemble a varied team of employees.

Here are the top reasons why workforce diversity can benefit your business, and the common step solutions you can rely upon to effectively implement diversity initiatives as you move forward.

The research is increasingly clear

Let's cut right to the heart of the issue and establish why business owners everywhere should be convinced that workforce diversity can benefit your business; the research proving that diversity initiatives are valuable and worthwhile is increasingly clear, with the market-wide consensus around this issue rapidly becoming more obvious by the day. One thorough analysis of the venture capital industry makes it clear that firms with a more diverse workforce saw a dramatic increase in the performance of their top investors.

As the Harvard Business Review illustrates quite clearly, the venture capital industry has been supercharged by the introduction of workforce diversity initiatives into an otherwise homogenous industry where most workers hailed from deeply similar backgrounds. Partners that shared school backgrounds routinely saw the success rate of their acquisitions go below that of their more diverse competitors. This should make it obvious for business owners everywhere that having a diverse workforce that ranges from a wide set of backgrounds is crucial for remaining competitive into the near-future.

These findings don't only indicate that we should champion a diversity in educational backgrounds, either, but also that we should be fighting for increased gender and racial equality in the workplace, too. Companies which shun workers from certain backgrounds are doing nothing other than minimizing their own ability to scoop up the most talented human capital available, and it should be clear by now for business owners to see that they're only handicapping themselves by placing restrictions on who they hire on the basis of their background.

The idea that diversity is only useful in highly technical or human capital-focused industries is also wrong. As more entrepreneurs in a wide range of sectors are coming to realize, businesses in every industry imaginable can benefit from workforce diversity.

Diversity ups productivity

An analysis of the role diversity plays in the manufacturing industry helps illustrate the point of how workforce diversity matters regardless of whether you're discussing retail or office workers or those laboring on the factory floor. As research from PwC indicates, the manufacturing industry has been succeeding at promoting diversity in the workforce to its benefit for years now. The report reminds business owners that setting an inclusive tone and establishing a welcome workplace culture is imperative for success when it comes to forging a diversity initiative that's impactful.

Despite the fact that the benefits of workforce diversity are clear to see, however, many industries are still struggling when it comes to fostering a more welcoming environment for a greater array of workers than a casino online. Countless companies and business owners are struggling with complex hiring decisions, for instance, and some stubborn holdouts still refuse to see the structural hurdles to success that plague workers from certain backgrounds. Nonetheless, business owners who are interested in workforce diversity don't have to feel intimidated, as it's very possible to tap into the power of a diverse workforce without bankrupting or radically changing your business from the ground up.

Forging a more diverse workforce

Those interested in forging a more diverse workforce should begin by focusing on inclusion. Far too many business owners think they can simply hire workers from diverse backgrounds and reap the benefits of diversity, but as a matter of fact you have to establish a workplace culture where everyone feels included and productive if you actually want to harvest the fruits of your labor. Diversity simply doesn't stick without inclusion, so be sure that your leadership figures are aware of the example they have to set in order to make workforce diversity a permanent facet of your company culture.

Entrepreneurs who are still struggling with workforce diversity shouldn't be afraid to study global examples, either. The Australian workforce's leadership in the realm of women in the workplace, for instance, or the diverse ethnicity of South African executive teams can both be studied as helpful examples. McKinsey's research on delivering through diversity contains many examples of workforce diversity in action, and business owners shouldn't hesitate to copy the schemes of others that have worked.

Don't let the critics fool you - workforce diversity is vitally important for your company culture and matters when it comes to profits and public relations alike. Embrace the power of a diverse workforce by fostering an inclusive company culture, and your business will soon be soaring to new heights.

© 2019 VCPOST, All rights reserved. Do not reproduce without permission.


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